How to Invest in Bank of Baroda NPS Scheme 2024

In today’s financial landscape, it is in your best interest to consider post-retirement financial security well in advance, long before the actual retirement days arrive. For a better and prospering future with a life of comfort, you need to save and grow money from today. 
The National Pension System or NPS offers an investment avenue, ideal for risk-averse individuals. You can invest in this Bank of Baroda NPS scheme to secure your future. BoB NPS will help you grow your wealth at a stable interest while providing tax benefits as an added advantage. Let’s discuss this investment option in detail.

What Is the Bank of Baroda National Pension Scheme?

The Government of India launched the National Pension System (NPS) in 2004 to provide an investment avenue to people for retirement savings. To secure a retirement income, you can invest in this scheme through the Bank of Baroda. It comes with a nominal minimum yearly contribution of ₹1,000. You can open your BoB NPS account with an initial investment of ₹500. 

Eligibility Criteria for BoB National Pension Scheme

You can subscribe to the BoB NPS if you meet the following eligibility parameters:

1. Indian citizen (resident, non-resident or overseas)
2. Individuals under the age group of 18 to 70 years

You can open an NPS account at the Bank of Baroda with an employee-employer group. In this regard, you need to keep in mind that you can continue the NPS account up to the age of 75 years.

Features of the Bank of Baroda National Pension Scheme

Here are the basic features and benefits of Bank of Baroda NPS:

1. The investment amount for Bank of Baroda NPS is flexible. You can choose how much to invest yearly.
2. The NPS account opening process at the bank is straightforward. Whether you apply online or offline, you will get a Permanent Retirement Account Number or PRAN that you can use from any geographical location in India.
3. There are 2 types of NPS accounts at the Bank of Baroda; Tier I and Tier II. Tier I accounts are not withdrawable. If you want to get the flexibility of voluntary withdrawal, you can open a Tier II account.
4. Bank of Baroda NPS account is accessible from any location within India, irrespective of whether your job and fund manager are the same or different.
5. Pension Fund Regulatory and Development Authority or PFRDA is the institutional body regulating NPS investment. It monitors the fund management done by the NPS Trust.

Tax Benefits For Bank of Baroda National Pension Scheme

The following are some tax benefits you can avail by investing in the National Pension Scheme of the Bank of Baroda, stated according to the type of account holders:

1. BoB NPS Tax Deduction for Individual Account Holders

You can get tax deductions of up to 10% of your gross income under section 80CCD (1). The maximum deduction you will get is ₹1.5 lakhs and it is inclusive of the tax deduction limit under Section 80CCE.

2. BoB NPS Tax Deduction for Corporate Account Holders

Corporate NPS subscribers can get an additional tax benefit under Section 80CCD (2) of the Income Tax Act of India. The contribution of an employer in the NPS account of an employee is deductible from his/her net taxable income. The maximum limit of this benefit is 10% of the salary, including the basic and DA.

3. BoB NPS Tax Deduction for Accounts Under Section 80CCD(1B)

You can get additional and exclusive tax benefits for your NPS investment of up to ₹50,000 in the Tier I account under Section 80CCD (1B). This tax benefit comes even if you get a full tax deduction under Section 80C of the Income Tax of India.

How to Invest in the Bank of Baroda NPS Scheme?

You can open your BoB NPS account by following the steps mentioned below:

• Step 1: Open the official portal of the Bank of Baroda.
• Step 2: Go to the ‘Investment’ section.
• Step 3: Click on ‘View All’ under ‘Govt. Deposit Schemes/Bonds’.
• Step 4: Find the ‘National Pension Scheme’ option and click on ‘Apply Now’.
• Step 5: Enter your name, email ID, mobile number, address, bank branch and verification code.
• Step 6: Give consent to the terms and conditions.
• Step 7: Submit the filled-in Bank of Baroda NPS form.

Alternatively, you can visit the nearby branch of the Bank of Baroda, ask for the application form and submit the filled-in form with the required documents. 

Documents Required for Bank of Baroda NPS Scheme

Here are the documents you will have to submit while applying for NPS at the Bank of Baroda:

1. Proof of Identity: Aadhaar Card/PAN Card/Driving License/Voter ID Card
2. Proof of Address: Passport/Ration Card/Job Card/Bank Passbook/Utility Bills/House Tax Receipt. 

Things to Know About BoB NPS Scheme 

Before you invest in BoB NPS, here are a few points for you to keep in mind:

1. The return of BoB NPS investment is not fixed. The rate fluctuates according to the prevailing market performance.
2. NPS fund managers allocate the investment amount to different asset classes and the maturity amount depends on returns generated from the asset allocation.
3. You have to select your NPS Fund Manager out of 8 choices for the same.
4. You can choose the asset class or split of the asset class in which your NPS amount will stay invested. The options you get for this include government bonds, corporate bonds, equity and other alternatives.
5. If you want to save and grow money for post-retirement usage only, you can open a Tier I NPS account. However, if you want unrestricted withdrawals from your NPS balance, you will have to open a Tier II account on top of your Tier I account.

Final Word

You can invest in BoB NPS to securely grow your retirement fund and ensure a life of financial liberty. The Bank of Baroda lets you open an NPS account online in a hassle-free way. If you are an Indian citizen over 18 years old, you can start your investment in this instrument to reduce your tax obligations and accumulate retirement wealth at the same time.

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Disclaimer

This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.